Aquaculture technology manufacturer, Stranda Prolog, has filed for insolvency, blaming the Covid-19 pandemic, cost increases and shortages of materials and labour.
The application was made on 5 September at Møre og Romsdal district court in Norway.
“Stranda Prolog was prepared for continued growth and had a large order backlog when Covid-19 hit,” said the company in a statement.
“Order intake was good at the start of the pandemic but gradually softened. Limited order intake, significant cost increases on legacy contracts, and a lack of raw materials and labour to complete the projects gradually affected profitability and liquidity.
“We want to praise our employees who have performed exceptionally through this difficult period. Without their flexibility, effort and expertise, this day would probably have come earlier. The board humbly thanks them for their efforts.”
Marel, which acquired 40% of Stranda Prolog in January 2021, has estimated the impact from Stranda Prolog’s collapse to be around €7 million in the Q3 2022 accounts. There will be no impact on operational performance as the holding in Stranda is categorised as investments in associates, though the impairment will impact net result.
The business is now in the hands of the administrators and the Stranda board hopes there is scope for all or parts of the business to resume. Marel is a minority shareholder in Stranda and, together with the other shareholders, is looking into available options.
